Success Factors for Implementing Change Management Utilities considering smart grid technology recognize that implementation depends on the successful integration of new technologies with legacy system infrastructure. But it also depends on human dynamics, which are essential to effective change management. This article highlights the Autovation Change Management Education Session from Wednesday, Sept 28. Speakers: Shawn McDonough, Rappahannock Electric Cooperative Tom Kerestes, West Monroe Partners Kathy Cowan Sahadath, Hydro One Networks, Inc. Deb Bradbury, Enspiria Solutions Implementing a Program Management Office for What’s Beyond the Smart Grid Rappahannock Electric Cooperative (REC) is the ninth largest cooperative in the U.S., serving 22 Virginia counties. West Monroe Partners is a full-service business and technology consulting firm working in strategy and execution. West Monroe Partners provided project management solutions to REC as it implemented smart grid technology. The utility and consulting company partnered to oversee strategic development with projects, but executives recognized more was needed including: Coordination and management of projects Formalized project management and prioritization process for all major projects to properly manage resources and investments Business process improvement for business transformation activities resulting from REC’s smart grid implementation Utilities typically implement Program Management Offices (PMO) focused on IT activities. Under the Smart Grid Investment Grant (SGIG) funding, REC created a PMO to: Monitor progress of multiple projects Enable cross-functional team collaboration Centralize specific financial and operational reporting requirements By designing the PMO for use beyond the initial three-five year Department of Energy (DOE) SGIG funding period, REC planned to maximize capital investment. Kerestes described the best practices of a PMO: Time management Resource management Risk and issue management Scope and change management Communication management Quality management Integration management Cost management Some problems may arise with change management, business process redesign and quality assurance. The top obstacle to successful change management is employee resistance. But the “number one success factor to implementing change management is strong sponsorship with an organization,” said Kerestes. Some of the questions you should ask: What are the requirement specifications for this project and does everyone know what they are? What should a quality assurance plan look like for this project? How do we know that we’ve managed this project to ensure a quality product is delivered? All suggestions come into the PMO for review and analysis based upon strategically established filters. Projects are then grouped into categories based on whether or not they move forward, and how the PMO will treat them. Change Management Enables Smart Grid Innovation Hydro One, a utility that delivers electricity to 1.3 million customers across Ontario, is utilizing change management strategies to foster an environment of innovation. Hydro One’s Advanced Distribution Project (ADS) is one of several initiatives to sustain and modernize Ontario’s electricity grid. It is driven partially by the Ontario Green Energy Act, which mandates the connection of more renewable energy sources. Hydro One’s ADS project is a multi-year initiative to analyze, identify and deploy applications, equipment and new processes to better serve their customers with the following business objectives: Optimize connection of Distributed Generators Improve distribution reliability and operations Optimize outage restoration Optimize network asset planning Working with IBM Canada, GE Canada, Telvent Canada and Enspiria Solutions Advisors, Hydro One prepared a project schedule and identified the implementation challenges: Utilizing new tools, technology and business process to make better business decisions Staging a complex implementation Managing an aggressive schedule Securing resources needed for multi-disciplines Managing impact to lines of business Communicating effectively Coordinating 10 project work streams working in parallel Realizing business transformation To tackle these challenges, a thorough change management strategy was established to provide a shared vision of the future. Through community and training activities, ADS awareness established a network of change leadership, delivering the “right messages to the right people at the right time.” The team is working toward success by maintaining active and visible executive sponsorship, facilitating frequent and open communications, monitoring performance and leveraging best practices and lessons learned. Attention utility professionals: please share your change management experiences (challenges and successes) with your peers. There are several ways you can do this: Submit an abstract for Autovation 2012, Sept. 30-Oct. 3 in Long Beach, Calif. The Call for Speakers deadline is Jan. 13, 2012. Provide a byline article for News Link or agree to be interviewed by News Link staff for an article. Or, submit a blog post. Contact Janice Greenberg. Consider hosting a regional learning lab or participating in a webcast. Contact Debby Scheck. Start a discussion on the Utilimetrics LinkedIn Group. We look forward to hearing from you!